PARIS: TotalEnergies and Vanguard Renewables have joined forces to establish a joint venture that promises to revolutionize the production of renewable natural gas (RNG) in the United States.

The agreement, signed in New York on April 12th, 2024, was witnessed by industry giants Patrick Pouyanné and Larry Fink, the respective CEOs of TotalEnergies and BlackRock. Vanguard Renewables, is a portfolio company of Blackrock’s diversified infrastructure business.

Olivier Guerrini, Vice President, Biogas at TotalEnergies said, “TotalEnergies is pleased to partner with BlackRock and its portfolio company Vanguard Renewables, to accelerate the development of food biowaste processing into renewable natural gas in the United States.

By expanding into this fast-growing market, our joint venture will create value for both companies while benefiting the food and farming sectors as well as providing a ready-to-use solution to industrial companies willing to decarbonize their energy supply. This joint venture is a new step for TotalEnergies in achieving its objective to produce 10 TWh of renewable natural gas by 2030.”

The joint venture aims to propel the construction of 10 RNG projects within the next year, boasting an impressive annual capacity of 0.8 terawatt-hours. Currently, three projects are underway in Wisconsin and Virginia, each with the potential to produce nearly 75 gigawatt-hours of RNG annually.

This collaboration is just the beginning, with plans to evaluate an additional 60 projects nationwide, potentially increasing the capacity to 5 terawatt-hours per year. Vanguard Renewables, a pioneer in farm-based RNG production since 2014, brings to the table 17 operational facilities and an ambitious goal to commission over 100 RNG projects by 2028.

“We are thrilled to welcome TotalEnergies as a strategic partner, building on our mission of developing farm-based organics-to-renewable natural gas projects across the United States. This collaboration validates Vanguard’s leadership position in the RNG space in the U.S. and brings together our expertise with TotalEnergies’ extensive experience in large-scale energy development, safety procedures, and global partnerships. These 10 RNG projects, jointly undertaken by TotalEnergies and Vanguard Renewables as co-investment partners, further reinforce our commitment and ability to deliver on our mission of harnessing the power of waste to decarbonize our planet,” stated Neil H. Smith, Chief Executive Officer at Vanguard Renewables.

The synergy between TotalEnergies’ European market expertise and Vanguard Renewables’ innovative project development is poised to create a sustainable energy model. The venture will focus on transforming waste from the food and beverage industry, supplemented by dairy manure, into low-carbon fertilizer through anaerobic digestion.

Vanguard Renewables’ strategic alliances with leading food industry brands and its Farm Powered Strategic Alliance offer a sustainable solution for organic waste recycling and energy generation. This initiative is set to make significant strides in the decarbonization of industrial processes, marking a new era in the renewable energy landscape.

Doug Vaccari, Managing Director, Diversified Infrastructure, BlackRock,said, “This exciting partnership brings together TotalEnergies’ global experience in scaling and operating renewable gas assets with Vanguard Renewables’ market-leading position in the United States, extensive operational history and customer relationships, and robust project portfolio. With TotalEnergies as a strategic partner, Vanguard Renewables will be positioned to achieve even stronger growth and continued success”.

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